Home prices stabilized in the fourth quarter of 2009, with the national median at $172,900 — 4 percent below the same quarter a year ago — but it’s the smallest decline in two years.
The survey by the National Association of Realtors on the latest quarter’s existing home sales show some promise, with a larger number of metropolitan areas seeing prices jump from a year earlier.
Total existing home sales, including single-family and condo, jumped 13.9 percent on a seasonally adjusted basis in the fourth quarter, compared with the third quarter.
Sales increased, compared to the third quarter of 2009, in 48 states and the District of Columbia, while 32 states saw double-digit gains.
The national median price for an existing single-family home was $172,900 in the fourth quarter, down 4.1 percent from the fourth quarter of 2008. The median price indicates that half sold for more and half sold for less.
“This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” said Lawrence Yun, NAR chief economist.
In the fourth quarter, 67 out of 151 metropolitan areas reported higher median existing single-family home prices, compared with the fourth quarter of 2008 — 16 with double-digit increases.
Yun attributes the surge in existing home sales to record low interest rates and to the federal program offering first-time homebuyers a tax credit of up to $8,000. The program was extended beyond November’s initial deadline until April 30, 2010. The program was also expanded to long-term existing homeowners who meet certain guidelines.
With slightly diminishing inventories and interest rates still at or below the 5 percent level, Yun anticipates a greater number of metropolitan areas seeing higher home prices.
“With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring,” he said.
Freddie Mac reported that the 30-year fixed-rate mortgage averaged 4.97 percent — with an average 0.7 point — for the week ending today, Feb. 11, down from last week when it averaged 5.01 percent. Last year at this time, the 30-year fixed averaged 5.16 percent.
